Creating New Products and Services and Expanding into New Business Areas

「For the DIY craft kit Rolife (formerly Tsukurundesu), we worked to raise awareness and strengthen brand recognition by introducing new products and providing ongoing information. The Tsukurundesu business performed well, as it was able to capture inbound demand at mass retailers with which it had newly begun doing business.」

「The Tsukurundesu business performed well because it was able to capture inbound demand at mass retailers with which it had newly begun trading.」

「Earnings from the glamping business improved significantly, with both sites exceeding their planned occupancy rates.」

「During the peak summer season for the glamping business, the newly opened THE GLAMPING PLAZA Alps BASE fell slightly short of its planned occupancy rate because it was still in the early stages of operation, while the existing THE GLAMPING PLAZA Alps BASE achieved its planned occupancy rate. However, these activities have not yet reached a stage where they make a significant contribution to earnings.」

「We opened a new glamping site, THE GLAMPING PLAZA Ise-Shima BASE, but it has not yet contributed to earnings.」

「We will actively develop products and services that leverage our expertise and create businesses that could become new earnings pillars, while swiftly responding to changes in the times, including the apparel and glamping businesses entering their launch phases.」

「Amid this business environment, the Group continued to actively pursue productivity improvements in its mobile business and the creation of businesses that could become new sources of revenue in its imaging business, including Palette Plaza.」

「Because costs were incurred to develop the glamping and apparel businesses as new earnings pillars, the Imaging business reported lower revenue and lower profit.」

「As a way to create more touchpoints with new customers, we established a dedicated pop-up store department and put in place a structure capable of handling everything from selecting venues to operations. We worked to raise awareness of Tsukurundesu® and strengthen brand recognition.」

「To expand customer touchpoints, the Group will open pop-up stores in new locations outside its existing stores and expand them as a new business by applying the know-how and experience developed through planning and operating pop-up stores.」

「To increase points of contact with new customers, the Group plans to open pop-up shops in new locations and expand the know-how and experience developed through planning and operating pop-up shops into a new business.」

「To offset the decline in in-store sales at franchise locations, the Group opened pop-up stores for the Tsukurundesu® DIY craft kit inside major stations operated by railway companies in the Tokyo metropolitan area, receiving a response that exceeded expectations. The Group will continue using these sales events to offset the decline in in-store sales at franchise locations.」

「The Tsukurundesu® DIY craft kit, which allows anyone to enjoy making handmade items, launched a new 3D wooden puzzle recreating the newly rebuilt National Stadium under the supervision of the National Stadium.」

「The Tsukurundesu® DIY craft kit, which allows anyone to enjoy making handmade items, expanded its lineup with products including Pocket Bugs®, an insect-guidebook 3D wooden puzzle launched as an exclusive collaboration model with a major bookstore chain. Through initiatives including ongoing communication on the brand's official website and interactive programs that let customers enjoy the process of making puzzles together, the Group worked to increase awareness and establish Tsukurundesu® as synonymous with DIY craft kits. The increase in time spent at home due to the prolonged COVID-19 pandemic also provided support, and cumulative shipments across the series reached 880,000 units, compared with 370,000 units at the end of the previous consolidated fiscal year.」

「The Tsukurundesu® DIY craft kit series, which allows anyone to enjoy making handmade items, expanded its lineup with the launch of Pocket Bugs, a 3D wooden puzzle series with Japan's first insect guidebook, as an exclusive collaboration model with a major bookstore chain. This helped cumulative shipments since the series launched in autumn 2018 exceed 760,000 units.」

「In the print business, the newly launched same-day photo book “Sugu-Al,” the industry's first silver-halide-printed photo book with same-day finishing, performed well during the period. Orders for the renewed Anything Dubbing analog-media digitization service also progressed steadily compared with the first half of the previous fiscal year, supported by demand from people staying at home. However, revenue declined as opportunities to take photographs decreased because of requests to refrain from holding travel, life-event and other events and functions due to the impact of COVID-19.」

「As more people spent time at home, the Tsukurundesu® DIY craft kit series, which allows anyone to enjoy making handmade items, benefited from being an activity that made that time more meaningful, as well as from the expansion of its lineup. Cumulative shipments since its launch in autumn 2018 exceeded 490,000 units.」

「Since the launch of the Tsukurundesu® DIY craft kit, which allows anyone to enjoy making handmade items, in autumn 2018, the series has reached approximately 40 corporate wholesale customers and 726 stores carrying the products, while total shipments across the series have exceeded 370,000 units.」

「In May 2019, the Group launched WeTy, an original apparel business for teams, and in June fully renovated the Chariot Goods Store app service, which allows users to create original merchandise from characters they made with Sanrio Co., Ltd.'s Chariot Maker.」

「From autumn 2018, as the first offering in the Tsukurundesu series, the Group entered into an exclusive sales agreement for DIY kits popular overseas, including miniature houses and 3D wooden puzzles, from ロボタイム社, headquartered in Suzhou, China, and began selling them. The Group also approached other companies in addition to its own stores, expanding the number of stores carrying the products.」

「In the second quarter of the consolidated cumulative period, orders for both the Design T-shirts that the Group had continued offering since the first quarter and the Anything Dubbing Service exceeded the previous year's levels in the print business. For the Anything Dubbing Service, some sales were carried over into the third quarter.」

「Alongside the development of new products and services pursued since the end of the previous fiscal year, the Group's newly established large-scale in-house plant began operations to support the full-scale launch of its online business, and it ran campaigns for the softcover Light Book photo books and Design T-shirts that can be made from a single item.」

「The fiscal year was one in which the Group laid the foundation for a return to growth in its print business by developing new products and services, including the low-priced softcover Light Book photo-book series, Design T-shirts and Teamwear that can be made from a single item, and establishing a new large-scale in-house plant to support the full-scale launch of its online business under a new brand.」

「In addition, the Group continued developing new products and services, providing ongoing management support to owners who joined the franchise network during the fourth quarter of the previous fiscal year, and preparing for this fiscal year's franchise rollout as scheduled.」

「In the second quarter of the consolidated cumulative period, same-store sales in the print business were 96.9% of the previous year's level, but reached 100.9% in September owing to a campaign for the Anything Dubbing Service and growth in the Negative-to-Smartphone Transfer Service. The Group also continued developing new products and services, providing ongoing management support to owners who joined the franchise network in the fourth quarter of the previous fiscal year, and preparing for this fiscal year's franchise rollout.」

「In addition to providing management support to owners who joined the franchise network in the fourth quarter of the previous fiscal year, the Group will continue developing new products and services, including portrait photography services and panel printing.」

「To establish this trend on a firm footing, the Group will shift its print business to operating Photo & More stores under a franchise model, promote the opening of carrier shops in its mobile business, and create new print services in connection with the expansion of First Lab locations, which are primarily installed as print corners in stores operated by companies in other industries, while working to establish a sustainable growth trend.」

「The Group sought to strengthen operations following the renovation of its Photo & More stores and launched new high-value-added services, including original T-shirts, tote bags and calendars.」

「The Group sought to strengthen operations following the renovation of its Photo & More stores and launched new high-value-added services, including original T-shirts and tote bags.」

「In its print business, the Group sought to strengthen operations following the renovation of its Photo & More stores and launched original T-shirts in June ahead of the summer season.」

「The Group believes that boldly creating new products and services that address diversifying needs and expanding into new business areas will enhance its corporate value and stabilize its management foundation.」